Wabtec (WAB) Shares Rise 24.8% in the Past Year: Here's Why
Wabtec Corporation WAB is gaining from solid growth across its Freight segment and its raised 2023 guidance.
Management raised Wabtec’s 2023 guidance. It now sales of $9.50-$9.70 billion (prior view: $9.25-$9.50 billion). Adjusted earnings per share are estimated between $5.80 and $6.00 (prior view: $5.50 and $5.80). Management anticipates strong cash flow generation, with operating cash flow conversion exceeding 90%.
Wabtec’s top-line performance (up 18.1% year over year in the first nine months of 2023) continues to gain from solid growth across its Freight segment revenues (up 18.9% year over year in the same time frame). Segmental growth was backed by strength across all product lines, with solid upticks in Equipment, Digital Electronics and Services.
Owing to these tailwinds, 2023 earnings estimates have inched up 1.2% to $5.95 per share in the past 60 days.
Wabtec currently carries a Zacks Rank #2 (Buy). WAB has gained 24.8% in the past year compared with 18.8% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Other Stocks to Consider
Investors interested in the broader Transportation sector may consider other top-ranked stocks like American Airlines Group Inc. AAL and SkyWest SKYW.
American Airlines currently carries a Zacks Rank #2. Improved air-travel demand, particularly on the domestic front, is aiding AAL.
The carrier's debt-reduction efforts are impressive as well. Management aims to reduce its debt by $15 billion by 2025 end. The company aims to attain this objective through naturally occurring amortization.
SkyWest presently sports a Zacks Rank #1 (Strong Buy). SKYW's fleet-modernization efforts are commendable. Initiatives to reward its shareholders also bode well. You can see the complete list of today’s Zacks #1 Rank stocks here.
We are impressed by SKYW's efforts to reward its shareholders through buybacks. SKYW repurchased 9.6 million shares in the first nine months of 2023.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Westinghouse Air Brake Technologies Corporation (WAB) : Free Stock Analysis Report
